Can Low Cost SEO Firms Service High Cost Client Bases?

A Search Engine Watch Forums thread has a German based SEO individual asking if it is possible to move your SEO operation to a low cost country (he names Thailand) while continuing to service customers based in high cost countries?

He wants to know if you can run an SEO company in Thailand and service clients in Germany, the UK or the United States?

I personally know many companies that do so - they can offer their services at the same high prices, enjoy lower cost of labor and still acquire some high end clients in high cost locations. I also suspect many of those companies have "offices" in the high cost locations as well, but keep most of their operations in the low cost locations.

So the question below is, can you have all your operations (sales, marketing, operations, technical, etc) in a low cost country and still service high cost country clients?